| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 441,023 | 780,409 | -43.488 | ||
| Gross Profit (Loss) | -65,148 | -146,513 | -55.534 | ||
| Operational Profit (Loss) | -259,009 | -247,514 | 4.644 | ||
| Net Profit (Loss) after Zakat and Tax | -389,350 | -338,475 | 15.03 | ||
| Total Comprehensive Income | -359,920 | -345,756 | 4.096 | ||
| Total Share Holders Equity (after Deducting Minority Equity) | 148,579 | 337,268 | -55.946 | ||
| Profit (Loss) per Share | -12.37 | -10.76 | |||
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The increase in losses for the current year compared to the previous year is mostly attributed to: |
a) Sales decreased by 339.4 million Saudi riyals by (43.5%) compared by the previous year, because of the impact of the operations of the company and its subsidiaries due to the pandemic of the emerging corona virus (Covid-19), as some contracts were postponed, and additional delay in reaching the raw materials. Consequently, production capacity and inventory levels have decreased.
b) Some provisions were formed in 2020 in the amount of SAR 113.17 million as follows.
1. Provision for expected credit losses on short-term receivables amounting to SAR 35.9 million.
2. Provision for doubtful debts (Under legal procedures) amounting to SAR 65.6 million.
3. Discount on LT Retention amounting to SAR 4.13 million.
4. Warranty provisions amounting to SAR 4.04 million.
5. Inventory Provision on Loss Making Contracts amounting to SAR 3.5 million.
c) Re-measurement of the employee share ownership plans and its financial impact is 12.7 million Saudi riyals in 2020.
d) An Increase in ZAKAT provision in 2020 by 23.8 million Saudi riyals compared with the previous year.
e) An impairment test has been conducted for the joint venture (Amiblu) which resulted a loss by 9.9 million Saudi riyals has booked in 2020 according to IAS 36 “Impairment of Assets”.
The Board of directors of the Group has resolved on 25 March 2021 corresponding to Sha’aban 11 1442H to continue the Group as going concern. Further, as at December 31, 2020, current liabilities of the Group exceeded the current assets by SR 582.5 million (2019: SR 467.9 million). Additionally, the Group is in breach of certain financial covenants related to bank facilities. These create material uncertainty related to the going concern. Our opinion is not modified in respect of these matters.
b) These reclassifications have no impact on the net result for the comparative period.
c) The prior year adjustment to the comparative information contained in the statement of changes of equity amounting to SAR 14.1 Million represents the restatement of opening equity as of January 1, 2019, recognized at year ended December 31, 2019, whereby management has identified in the first quarter of 2020 that the previously recorded provision for employee's share option of SR 14.1 Million was not correctly reflect the value and the provision should have been reversed in the prior year. The identified error has been corrected in these consolidated financial statements and the opening equity balance of 2019 has been restated accordingly.
The loss per share for 2020 was SAR (12.37), calculated by dividing the net loss attributable to shareholders of the company of SAR 389.4 million on the weight average number of outstanding shares 31,463,706, and for the comparative period ending December 31, 2019 SAR (10.76), calculated by dividing the net loss attributable to shareholders of the company of SAR 338.5 million on the weight average number of outstanding shares 31,463,706.
With respect to calculating the earnings per share (loss), the earnings per share (loss) has been calculated in accordance with “International Accounting Standard 33 (IAS 33): Earnings per share.”, Which requires that the number of ordinary shares outstanding before the event be adjusted proportionally to the number of ordinary shares The list is as if the event occurred at the beginning of the earliest displayed period (i.e. comparative figures) and, accordingly, the earnings per share (loss) was calculated by dividing the profit (loss) for the period as if the reduction was made on January 1, 2019, and accordingly the number of issued shares is calculated 32,000,000 shares according to the new capital, minus the number of shares held on the Employee Ownership Program, which amounts to 536,294 shares.
b) It is worth noting that in the announcement introduction, the loss after zakat and foreign income tax and total comprehensive loss have been added only for shareholders of the company, whereby in 2020, the total loss is SAR (393.867) million, includes SAR (4.517) million for non-controlling interests and SAR (389.350) million for shareholders of the company, and in 2019, the total loss is SAR (344.817) million includes SAR (6.342) million for non-controlling interests and SAR (338.475) million for shareholders of the company.
For the total comprehensive loss in 2020 is SAR (364.680) million, includes SAR (4.760) million for non-controlling interests and SAR (359.920) million for shareholders of the company, and in 2019, the total comprehensive loss is SAR (352.043) million includes SAR (6.287) million for non-controlling interests and SAR (345.756) million for shareholders of the company.
c) Accumulated Losses reaching 64.22% of Share Capital:
The company came to know on this announcement publishing date that its accumulated losses have reached 64.22% of its share capital, the total accumulated losses reached 205.5 million Saudi riyals, and the company will apply the procedures and instructions in this regard.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.